If You’re Not Paying for the Product, Your Data Is the Currency

In today’s digital economy, the phrase “If you’re not paying for the product, you are the product” has never been more relevant. But let’s be precise:**you’re not the product, your data is.**And for organizations, this reality carries both opportunity and risk.

The Illusion of Free

Free apps and platforms aren’t free. They operate on a value exchange:**your personal and behavioral data for access.**This data fuels targeted ads, personalization engines, and entire business models.

The global data monetization market will grow from $5.22B in 2025 to $41.25B by 2034, at a staggering CAGR (compound annual growth rate) of 25.8%.

Why Should Executives Care?

Because trust is eroding, and the cost of losing it is enormous:

• 86% of consumers expect strong data privacy rights
• 92% worry about online privacy, and 76% say companies should do more
• 63% believe most firms aren’t transparent about data use

This isn’t just compliance: it’s brand equity.81% of consumers say how you treat data reflects how you value them.

The “Free” Model’s Hidden Cost

Consumers accept the trade-off:80% know ads power free services and see data-sharing as fair. But they demand control, transparency, and security.

Fail to deliver, and you risk:

• Regulatory penalties: GDPR fines topped €2.1B in 2024
• Reputational damage: Over half avoid firms after breaches
• Lost revenue: Trust is now a competitive edge

What Should Leaders Do?

1. Audit Your Value Exchange If your model relies on “free,” make the trade transparent and ethical.

2. Invest in Privacy as a Brand Asset Firms adopting advanced privacy tech see a 64% boost in consumer confidence.

3. Embed Privacy into Strategy This isn’t IT’s job alone: it’s a boardroom priority.

Bottom Line

In the digital economy,**data is the new oil, but also a liability.**If you monetize data, do it responsibly. If you offer “free” services, make the value exchange explicit. Because in 2025,trust is the ultimate currency.

References and Extra Information

1. Data monetization market growth:https://www.globenewswire.com/news-release/2024/12/19/2999999/0/en/Data-Monetization-Market-Size-to-Reach-USD-41-25-Billion-by-2034.html
2. Consumer privacy expectations (IBM Report):https://www.ibm.com/reports/data-privacy
3. Consumer trust and transparency stats (Pew Research):https://www.pewresearch.org/internet/2024/03/21/americans-and-privacy-concerns/
4. GDPR fines and brand impact (Enforcement Tracker):https://www.enforcementtracker.com/
5. Consumer attitudes toward ads and free services (IAB):https://www.iab.com/news/consumer-attitudes-toward-advertising/

Note: text reviewed and spelling corrected with the help of AI.

Also available at https://www.linkedin.com/pulse/youre-paying-product-your-data-currency-jorge-godoy-8thwf/